By MELANIE WARNER
Kinder Morgan Inc. agreed to sell certain Kinder Morgan Energy
Partners LP assets in order to receive US Federal Trade
Commission (FTC) approval of its proposed El Paso Corp.
Kinder Morgan agreed to buy El Paso in a cash-and-stock deal
valued at $21.1 billion when announced in October. Last week,
El Paso shareholders overwhelmingly approved the sale, which
would create North America's largest natural
gas pipeline operator.
Kinder Morgan Energy transports natural
gas and coal.
Under the tentative FTC agreement, Kinder Morgan will sell
Kinder Morgan Interstate Gas Transmission; Trailblazer Pipeline
Co.; its Casper-Douglas natural gas
processing and West Frenchie Draw treating facilities in Wyoming; and the
company's 50% interest in the Rockies Express
"We would prefer to retain all of these assets, but as we
anticipated when the transaction was announced, we must sell
certain assets in the Rockies to obtain FTC approval," Chairman
and Chief Executive Richard D. Kinder said.
Kinder Morgan expects to offer drop-down El Paso assets to
Kinder Morgan Energy to replace the assets that latter will
El Paso also expects to offer drop-down assets to El Paso
Partners LP, a natural-gas pipeline and storage facility
Kinder Morgan now expects to close the El Paso acquisition in
middle to late May.
Dow Jones Newswires